Download Pharmaceutical Services Unit Essential Medicines Management

Pharmaceutical Services Unit
Essential Medicines Management
MoH Procurement of Essential
Medicines
Presented by Mildred Mulenga
Pharmacist, MoH
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Pharmaceutical Services Unit
Essential Medicines Management
Outline:
 Objectives
 MoH Budget for EMs
 Procurement Cycle
 Factors that influence medicines prices
 Overview of Procurement Methods
 Good Pharmaceutical Procurement Practices
 Organization and Management of
Procurement Unit
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Pharmaceutical Services Unit
Essential Medicines Management
Objectives:
 To present the MoH Medicines Budget
 To describe the procurement cycle for
EMs
 To present an overview of MoH
Procurement Systems
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Pharmaceutical Services Unit
Essential Medicines Management
Introduction
 Pharmaceutical procurement system is
major determinant of availability and
total health costs
 GRZ Medicines budget is K590 million
(per capita ZMW47.20)
 18.4 % of total GRZ Health budget
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Pharmaceutical Services Unit,
DCCDs
National Essential Medicines Budget
Objectives
 ↑ availability and accessibility to all EMs and
medical supplies in all health facilities
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Pharmaceutical Services
Unit, DCCDs
National Essential Medicines Budget Key
Strengths for 2013:
112% ↑ increase of drug budget from ZMK
270 Billion (2012) to ZMK 594 billion
248% ↑ for ARVs & 20% increase for EMs,
TB, Laboratory, RHCs kits, vaccines, Cancer, Blood
Products and 540% ↑ for medical supplies .
 ZMK
120 Billion for ACTs
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Pharmaceutical Services Unit,
DCCDs
2013 Budget Key Issues:
 ZMK
28 Billion for medical and surgical supplies
still inadequate in view of the high cost centers of
imaging, sutures, implants, and renal consumables
 New
products ACTs under GRZ budget need
identification of reliable and consistent supply sources
 Huge medicine budget require timely procurement processes
to ↑ budget absorption rates and
↓ lead times
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Pharmaceutical Services Unit,
DCCDs
2013 Budget Key Implementation Plan
Issues
 Need for timely procurements of all supplies
under Yellow Book
 Regular review of EMLs to improve selection
 Implement all supply chain strengthening
activities to improve availability of Ems
 Implement all rational use of medicines
activities as planned
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4.5
20
28.8
16.1
19.3
10.0
12.0
60
40
5.4
6.5
120.0
175.0
180
6.2
7.4
7.4
8.9
25.8
31.0
50.2
80
Anti-Retroviral Drugs (↑248%)
ACTs (↑20%)
Vaccines and Immunization Supplies
Tuberculosis Drugs (↑20%)
RH Commodities (↑20%)
Laboratory Reagents (↑20%)
Cancer Drugs (↑20%)
Medical and Surgical Supplies (↑540%
Blood Transfusion Commodities (↑20
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Hospital Essential Medicines (↑20%)
0
76.2
91.5
100
78.0
93.6
160
ZMK Billions
120
District Essential Medicines (↑20%)
2012
2013
140
2012/2013 National Medicines Budget
Pharmaceutical Services
Unit, DCCDs
2012 National Essential Medicines Budget
District Essential Medicines
28%
Blood Transfusion Commodities
6%
Medical and Surgical Supplies
2%
Cancer Medicines
3%
Laboratory Supplies
2%
Reproductive Health Commodities
2%
TB Medicines
3%
Vaccines
9%
Hospital Essential Medicines
27%
ARVs
18%
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Pharmaceutical Services
Unit, DCCDs
2013 National Essential Medicines Budget
Hospital Essential Medicines
15%
District Essential Medicines
16%
Blood Transfusion Commodities
3%
Medical and Surgical Supplies
5%
Cancer Medicines
2%
Laboratory Supplies
1%
Reproductive Health Commodities
1%
TB Medicines
2%
Vaccines
5%
ACTs
20%
ARVs
30%
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Pharmaceutical Services Unit
Essential Medicines Management
2013 National ARV Drug Budget
US$35m , 25%
US$58,3m,
42%
US$45,4m
33%
USG
GF
GRZ
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Pharmaceutical Services Unit
Essential Medicines Management
Features of Effective Procurement
Process
 procure right medicines
 high quality
 lowest possible price
 timely delivery
 Transparent & written procedures
 separation of key functions
 Reliable payment & good financial
management
 Product quality assurance programme
 Performance monitoring
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Pharmaceutical Services Unit
Essential Medicines Management
MoH Procurement Cycle
 Review medicines selection
 Quantification
 Reconcile needs and budget
 Select procurement method
 Locate and select suppliers
 Specify contract terms
 Monitor order status
 Receive and check medicines
 Effect payment
 Distribute drugs
 Collect consumption data
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Pharmaceutical Services Unit
Essential Medicines Management
Factors influencing Drug Prices &
Total costs
 Unit Prices
 Purchasing models
 Visible & hidden costs
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Pharmaceutical Services Unit
Essential Medicines Management
Overview of Procurement Methods
 Open Tender (ICB or NCB)
 Restricted Tender (closed/selective)
 Competitive negotiations
 Direct Procurement
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Pharmaceutical Services Unit
Essential Medicines Management
Good Pharmaceutical Procurement
Practices:
 Procurement by Generic name
 NEML
 Bulky procurement
 Formal supplier Qualification (screening)
 Competitive procurement
 Orders based on reliable needs
 Reliable payments
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Pharmaceutical Services Unit
Essential Medicines Management
Good Pharmaceutical Procurement
Prices cont.
 Transparency and written procedures
 Separation of key functions
 Production quality assurance (WHO
certification & post marketing
surveillance)
 Monitoring (auditing systems in place)
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Pharmaceutical Services Unit
Essential Medicines Management
Organisation and Management of
Procurement System for EMs at
MoH
 Independent unit with Head PSU
 Chief Procurement Officer,
Pharmaceuticals
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Pharmaceutical Services Unit
Essential Medicines Management
Responsibilities in the Procurement
Process
 PSU
 ZPPA
 MTCs (Medicines and Therapeutics
Committees)
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THANK YOU
FOR
LISTENING.
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